This is really an engineers decision to make, hire one for a couple hundred and get the right advice.
However, if you where to remove the let in 1x4, you could reinstall it after you noch it at each stud to make it work. Bottom line is , it needs the support, it is part of a system for when the loads increase with wind ,snow and really bad weather.
The fire block does not need to be solid. you can pruchase rockwool insulation which is used for fireblocking. there are others available at your real "local" lumber yard. It is very dense and cuts with a handsaw.Much easier to make changes later also.
Run this by your building official, cause they are sometimes different on what they like to see.
Good luck, been there and finished...looked like it was always that way.